It’s a grim new year for newspapers. As yet another rough quarter draws to a close, we witness the closing of a venerable Midwestern journal, The Cincinnati Post, after 126 years of publication, as well as an alarming new trend: the outsourcing of advertising responsibilities to India.
Read more here.
According to world stock market capitalization data available from Global Financial Data and the World Federation of Exchanges, more than $9.5 trillion of stock market value was created from January-November 2007, an historical record for that period (see chart above).
Bottom Line: Despite $100 oil, a subprime crisis, a somewhat weak U.S. stock market, and constant worries about a U.S. recession, the $9.5 trillion increase in world stock market capitalization during the first 11 months of 2007 was almost as much stock market value as was added in the global bull market, Dot.com years of 1995, 1996, 1997 and 1998 COMBINED. The global economy and the global stock markets are alive and well.
Santa Claus may turn out to be the real front-runner in the primaries, judging by the way candidates are vying with one another to give away government goodies to the voters.
We now have a bipartisan tradition of the government stepping in to rescue people who engaged in risky behavior — whether by locating in the known paths of hurricanes in Florida or in areas repeatedly hit by wildfires over the years in California or by gambling in the housing market.
Why not also rescue people who gambled away their life’s savings in Las Vegas? That would at least be consistent.
After the departure of Senator Phil Gramm and House Majority Leader Dick Armey, Congress has been an economics-free zone. There is not one economist among the 535 members of Congress.
But, in an election year, that is not a political handicap. Santa Claus has won far more elections than any economist.
From Thomas Sowell’s article “Santa Claus Politics“
Strange as it sounds, the best way to boost sales at your independently owned coffeehouse may just be to have Starbucks move in next-door.
Read why here in Slate.com’s article “Don’t Fear Starbucks: Why the Franchise Actually Helps Mom and Pop Coffeehouses.”
Based on Intrade.com trading:
Hillary is more than a 3:1 favorite for the Democratic nomination. There is close to a 3-way tie for the Republican nomination among Giuliani (27%), Romney (26%) and McCain (23%).
NEW DELHI: American cult bike brand Harley-Davidson may finally hit the Indian roads.
Bottom Line: Globalization works both ways. As U.S. companies outsource business processing, research, software development and call centers to India, wealth and prosperity are created there that creates a demand for U.S. products like Harley-Davidsons.
(HT: Sanil Kori)
“Easy credit made bad homeowners out of good renters.”~Los Angeles manager of rental property, from an article in today’s Mpls.-St. Paul Star Tribune
Fortunately maybe, the homeownership rate in the U.S., after rising by 5 percentage points (from 64% to 69%) between 1994 and 2004, has fallen over the last four years by the biggest amount (.80%) since the mid-1980s (see chart above). Hopefully, many of the bad homeowners of the last few years of easy credit and now rising foreclosures are becoming good renters again.